Case study: IT cost and efficiency review at financial services client
IT cost reduction at a financial services client.
Having experienced a significant drop in revenues due to the downturn, the client initiated a cost review of its operations, including IT.
IT represented a significant portion of its operating costs and the client sought to achieve IT cost savings of approximately 20%.
The client had a federated IT model, with multiple business units, each with its own IT department of varying sizes and complexity.
There was also a central IT shared service function for IT infrastructure, but all application development and maintenance resided in the individual business units.
Using Deloitte's IT cost reduction methodology, the project team executed the project over a period of nine weeks. There were two main phases:
Data gathering phase
This consisted of a series of data requests, workshops, follow-up sessions and one-to-ones with the individual business unit IT departments. The purpose of these workshops was to:
Savings of up to 26% in the client’s IT cost base were identified.